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Prince Amir Al Saud

Mar 22 Top 5 Risk Factors to Affect Global Economy

The global economy seems to be running through a long lasting impasse due to some unavoidable risks for people. Economic imbalance in the world must be repaired boldly with the objective of enhancing stability and peace in the society. Top five factors can be highlighted to evaluate the roles of powerful countries like North Korea, China and other ASEAN countries to control such menace.

Threat from ISIS

The ISIS is an extremist militancy group in Syria which has forcefully occupied few important regions like Raqqa and Deir al-Za for running de facto government. These treacherous ISIS militants torture general citizens. Female vendors, beauty parlor owners and small scale traders are facing terrific jolts coming from ISIS hideouts. Women are hackled and compelled to involve in flesh trade. Many innocent Muslims have to flee with their belongings to stay in other neighboring states. ISIS is imposing higher taxes on commodities. They call local traders to abide by product selling norms set by ISIS. So, obviously the financial imbalance is very severe in Syria. It will affect the other neighboring states to give assistance to this country. The massacre attack in France is a threat to global economy. White House has lambasted ill activities of ISIS activists. At the same time, Syria must be much bold to tackle this militancy outfit to bring normalcy to the lifestyle. ISIS controlled regions are suffering from severe economic imbalance. The recession has started in Syria and ISIS affected areas. Brussels saw attacks from ISIS taking death toll to 30.

North Korea’s Aggressiveness to Do Nuclear Tests

North Korea is causing pain and trouble to disturb the tranquility in the world. The diplomatic relation with Pentagon is going to hell because of the recent nuclear test in North Korea. America has shouted that this Asian country must have patience with good motivation to establish relationship with America. The news of nuclear explosion ripped through the world making people aware of the devastating power gained this small country. It will be dangerous to foreign investors to have a look at North Korean market for investment. There will be obstruction to run business in N. Korea. Even White House is very clear that North Korea indulges the tension and violence which can be the Gruesome is the factor to slow down the economic development in N. Korea. China has claimed that N. Korea should be isolated owing to its daring attitude to explode nuclear bombs to threaten up the existence of human beings. US financial boosters will not be given to this country after the nuclear test. America and N. Korea signed up a bond confirming the adoption of effective initiatives to stop doing experiments to manufacture nuclear bombs. The nuclear reactor must be replaced to ensure the peace and flawless development. However, in the long run, North Korea didn’t respond well to deactivate the nuclear reactor. So the tension is very high to wound American authority.

South China Sea Dispute

The paradox regarding the disputes in South China Sea must be a powerful booster to heat up the dormant volcano to erupt violence. The recrudescence of tension and power mongering in the Deep South China Sea ultimately has created a deep lacunae with hollowness of distrust in obstructing the way of progression. China and ASEAN countries were unanimous to enjoy the economic interdependence to earn revenues. There must be a new code of conduct to follow. However, China showed aggressiveness when this country sent over 100 fishermen to the disputed sea zone. Chinese trolleys and small cargo boats are used by fishermen to hunt marine creatures recklessly. The disputes brewed up severely when Taiwan blamed Philippines for attacking few fishermen with arms. So, the South China Sea is now risky because of the hidden tension. Economic interdependence program is now at stake. China should be considerably modest with patience to value code of conduct. ASEAN countries must be united with clear vision to prevent further violence to damage the economic stability. China became the centerpiece for trading with other ASEAN countries. With ASEAN countries, China traded to $292.78 billion in 2010. It is more than 35 times higher comparing to the trading in 1991 when China with ASEAN countries traded $7.96 billion. However, recent activity of China in deep sea is not appreciable. It could worsen the diplomatic relation as well as the economic balance.

Donald Trump’s Devastating Remarks

The Unifier is always dazzling in vanity with superb victory over his hard core rivals like Ted Cruz, Rubio and Sanders. Donald Trump has been projected as a maverick non-political leader with a barrage of caustic remarks to backlash Mexican activities and Islamic countries. He is determined to close the doors on face of Islamic countries due to insurgency. These Gulf countries must stop gun running, exchange of bullets and delivery of manpower to fuel up the militancy outfits. So, his devastating feedbacks may act as a boomerang to hit the GDP growth of the country. His opponents are scarred because of his reckless allegation against all Muslim countries. It will hamper financial growth in the country.

Iran Can Cause Global Economic Imbalance

The news of gradual increase in the price of oil will help Iran to raise fund to level the inflation rates to some extent. This country ran through the recession. Even the Iranian government declared few adjustment loans for people to compensate losses. However, the fact is that Pentagon has not made good comments vis-à-vis the maneuver of Iranian soldiers to create severe tension in the Gulf region. The militancy and racial profiling seem to be booming once again in few pockets of Iran. That’s why Pentagon has already warned Iran to freeze the Strait of Hormuz (precious oil transit) for prolonged time. Iran concentrates on the collection of valuable uranium to design dangerous nuclear bombs to invade neighboring countries. So, Iran should be strategic to tackle its economic slowdown by taking bold initiatives to stop uranium collection. The global economy will be affected due to the ill activities of Iran to prioritize experiments to create devastating nuclear weapons in future.

Conclusion

Global economic imbalance must be settled through recurrent comprehensive discussions, table work and good diplomatic relation. Major powerful countries should try to find solutions unanimously to prevent such a painful global economic imbalance.

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Foreign Affairs Forum is a network of foreign affairs staffed by professional contributors from the worlds of journalism, academia, business, non-profits and think tanks, the FAF network tracks global developments on Great Decisions topics, daily.

The FAF network is a production of the publications, Founded in 2010 by group of GCC Diplomats and a group of concerned journalists and citizens, the Foreign Affairs Forum, serves as a catalyst for developing awareness, understanding of, and providing informed opinions on global issues.

All ideas and opinions expressed on the Foreign Affairs Forum and its affiliate networks are attributed solely to the author. The FAF Forum publications is one of the most prominent blog in middleeast and western nations with over 17 million followers.

Have a question about the FAF network? Contact our blog team at pr@faf.ae

Want to blog with us? Send your idea for a new blog, along with why you think it would make a great addition to the FAF network, two sample posts and a resume or CV to our Online Editor